Marijampole municipality – example of a regional center which builds favorable environment for business

Marijampole is an attractive place for investments in production and for industrial business development. According to the data of 2006-2016, foreign direct investments (FDI) increased several times in Marijampole municipality. This breakthrough is linked to:

– municipality‘s coherent policy in order to create favourable conditions for business (Marijampole free economic zone (Baltic FEZ) has been founded, support for business is being provided through direct subsidies or tax relief), also;

– by the entrepreneurship of the residents and the favourable environment to work and live in Marijampole.

Dominant industrial sectors are: food producing, wood processing, metal processing. Together with the growth of the country’s economy, already for five years in Marijampole grows the number of employees (8 percent) and entrepreneurial index of society (18.8 percent.).

Main business support measures in Marijampole municipality

Advantages for real estate tax

In Marijampole municipality tax relief on state land rent, land tax, real estate tax can be granted. E. g. the “CIE LT Forge” company case – Marijampole municipality decided that the company “CIE LT Forge” during 5 years would be granted 150 thousand Euros real estate tax relief. This will allow 7.5 mln Euros investment for construction of the new production line and will create 60 new jobs. The tax relief will pay off in less than 4 years, and at the same time will give significant benefits to the entire municipal economy (Source: http://www.investlithuania.com/lt/naujienos/cie- Lt-forge-planning-triple-alkaline-shaft-production-work-marijampoleje/ ).

Support and active participation in public private partnership projects

The exceptional case of Baltic FEZ, when an ARVI partnership company, that won the international competition for the operator’s functions, together with the municipality and the Ministry of Economy, also, the Public Enterprise Invest in Lithuania managed to attract a large-scale industrial investor to the Baltic FEZ. This successful example of public private partnership cooperation has attracted attention of many Lithuanian municipalities.

Support for the development of labor force resources, measures to ensure the matching of labor supply with business needs

The attractiveness of the investment climate in the regions to a large extent depends on whether local educational institutions do prepare qualified, skilled professionals for international manufacturing companies. These local educational institutions are the ones, who determine region’s uniqueness and attractiveness. In the case of Marijampole companies often cooperate with the regional vocational training centre actively. Later, part of the graduates these companies employ themselves. This suggests that only well-coordinated common work of the business and education can give really good results. Potential investors, that are interested in Baltic FEZ, always ask about labour force resources and the quality of its preparation. This opens opportunities for strengthening the educational programs of Marijampole VET institutions, also, their attractiveness.

The strategic goal of the municipality of Marijampole is to create a support system for the promotion of corporate investments, to develop data base of investment opportunities, to set up and develop Marijampole Innovation and Technology Park. Further improvement of infrastructure in the city will contribute to the development and growth of the single market, which will not only further reduce the level of unemployment in the municipality but also increase the qualifications of the workers.

Infrastructure development projects to increase business competitiveness of Marijampole region

In Marijampole, the municipality is fully committed to implementing public space improvement projects to facilitate daily life of business and its residents. In recent years J. Basanavicius square, the Old Town, Vytautas and Poetry Parks have been reconstructed, the Rygiskis Jonas Gymnasium and Rygiskis Jonas Park have been arranged. These and many other projects formed a more attractive image of the city, revived the parks, attracted more people into public spaces. The areas of the town are arranged and adapted for the up-to-date needs of the population and business.

An important sector of the country’s economic and social infrastructure is the railways. Its purpose is to meet the needs of efficient communication between society and business entities. At the end of 2013, the construction of Rail Baltica, which will connect the four countries (Poland, Lithuania, Latvia, Estonia), started in the municipality of Marijampole. Rail Baltica will enable Lithuania, as an important transit country for freight between the East, West and Northern Europe, to exploit the country’s geographic position for the development of logistics centres, the development of a cargo service base.

The necessity of new intersections in Marijampole has emerged during the construction of the railway track Rail Baltica via Marijampole. As a response accurately planned and timely measures were taken by municipality: the pedestrian crossing, two-level intersections with railways, safe pedestrian crossings were completed.

Marijampole municipality and the whole region aim to focus on higher value-added jobs. The public and private sectors are looking for rational solutions that can provide the location and all the necessary services for resettlement of existing companies in to the region, for the creation of new companies and the attraction of foreign direct investment.

Prepared according www.marijampole.lt and www.investlithuania.com information.

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Baltic FEZ has been established by a team of professionals with a clear objective – to responsibly assist investors in the setting up, development of a profitable business, contribute by its activity to the economic and social ecosystem of the region.

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